Innovating for prosperity - KPMG · Business GODFREY BOYCE Government SOUELLA CUMMING SIMON HUNTER BRUCE BERNACCHI Communities KIM JARRETT. Innovating ... The issue: value chains

Innovating for prosperityCONNECTION AND PACE

New Zealand’s growth agenda for prosperity

Innovateor bustMATT PRICHARD

Last year’s message

What got us hereWon’t get us there

Whatwill getus there?

82% OF CEOS ARE CONCERNED

THEIR CURRENT PRODUCTSAND SERVICES MAY NOT BE RELEVANT TO CUSTOMERS THREE YEARS FROM NOW

They’re probably

right

If then

Whatwill getus there?

82% OF CEOS ARE CONCERNED

THEIR CURRENT PRODUCTSAND SERVICES MAY NOT BE RELEVANT TO CUSTOMERS THREE YEARS FROM NOW

They’re probably

right

If then

What are we doing about it?

KPMG innovating

WhatNew Zealand needs from…

Business GODFREY BOYCE

GovernmentSOUELLA CUMMINGSIMON HUNTERBRUCE BERNACCHI

CommunitiesKIM JARRETT

Innovating for prosperity

The role of businessesGODFREY BOYCECONNECTION AND PACE


The role of businesses

DOUBLEOUR EXPORTS BY 2025

The issue:value chains and innovation

SOURCE: WORLD ECONOMIC FORUM

(NEW ZEALAND IS 13th OUT OF 138 COUNTRIES)GLOBAL COMPETITIVENESS INDEX 2016

NEW ZEALAND

EAST ASIA AND PACIFIC

0

1

2

3

4

5

6

7

INSTITUTIONS

LABOUR MARKET EFFICIENCY

GOODS MARKET EFFICIENCY

HIGHER EDUCATION AND TRAINING

HEALTH AND PRIMARY EDUCATION

MACRO-ECONOMIC ENVIRONMENT

INFRASTRUCTUREINNOVATION

BUSINESS SOPHISTICATION

MARKET SIZE

TECHNOLOGICAL READINESS

FINANCIAL MARKET DEVELOPMENT

LOW HIGHCAPABILITY TO INNOVATE

NEGATIVE

POSITIVE

SOURCE: KPMG GLOBAL CEO SURVEY

IMPACT OF DISRUPTION

Disruption

ONLY 28% OF CEOS RATE THEIR ORGANISATION CAPABILITY TO

INNOVATE HIGH

How innovative?What sort of innovation?


SOURCE: OECD

How innovative is New Zealand business?

2014 OR LATEST AVAILABLE YEAR, % OF GROSS DOMESTIC PRODUCTBUSINESS SPEND ON RESEARCH & DEVELOPMENT FOR SELECT COUNTRIES

WHAT HAS BEEN

WHAT MIGHT HAVE BEENHow

innovative is New Zealand business? 1.3%

SPEND ON INNOVATION

$245BNGDP TODAY

2.8%SPEND ON

INNOVATION

$330BNGDP TODAYSOURCE: OECD

CUSTOMER INTIMACY

CONNECTION & COLLABORATION

What’s holding back New Zealand business?

PIVOTAL LEADERS

STRATEGIC ANCHOR

AMBITION& ATTITUDE

INVESTMENT & RESOURCE ALLOCATION

CAPABLE PEOPLE

DEPLOYMENT DISCIPLINE

What sort of innovation by New Zealand business?

INPUT COMPANIES

FARMERS/GROWERS

TRADERS/MARKETERS

FOOD,CONSUMER,INDUSTRIAL

CONSUMERS

FOODRETAILERS

WE GET

$37BN

THEY PAY

$250BN

70% +What sort of innovation by New Zealand business?

INPUT COMPANIES

FARMERS/GROWERS

TRADERS/MARKETERS


CONSUMERS

FOODRETAILERS

Too much of this…

BRIGHT IDEA PRODUCT DEVELOPMENT

COMMERCIALISATION MARKETING


Not enough of this…

START HERE…MARKET RESEARCH CUSTOMER TESTING

BRIGHT IDEA

PRODUCT DEVELOPMENT

COMMERCIALISATION CUSTOMER EXPERIENCE

CUSTOMER FEEDBACK


Innovating for prosperityCASE STUDY: MOANA


STRATEGIC ANCHOR

CAPABLE PEOPLE

DEPLOYMENT DISCIPLINE

INVESTMENT & RESOURCE ALLOCATION

CUSTOMER INTIMACY

CONNECTION & COLLABORATION

AMBITION& ATTITUDE

PIVOTAL LEADERS


FISHERS

TRADERS/MARKETERS


CONSUMERS

FOODRETAILERS


FISHERS

CONSUMERS


More innovation at customer end

New Zealand needs:

More connection

More spend on innovation

Speed up

The role of GovernmentSOUELLA CUMMINGSIMON HUNTERBRUCE BERNACCHI

CONNECTION AND PACE


INNOVATIVECONNECTION AND PACE

The role of Government

DELIVERY OF OUTCOMES

SOUELLA CUMMING


CASE STUDY: INVESTING IN CHILDREN


The role of GovernmentCASE STUDY: COGNITIVE TECHNOLOGY

The role of GovernmentCASE STUDY: SOCIAL HOUSING MODEL


CONNECTION AND PACE


SIMON HUNTER


INNOVATIONSUPPORTING BUSINESS

CONNECTION AND PACE

Innovating where the value is

1%

14% 5%

20%

30%

30%

0%

25%

50%

75%

100%

EXAMPLE VALUE CHAIN

KNOWLEDGE & PUBLIC GOOD

SUPPLY PRIMARYACTIVITY

ADVANCEDACTIVITY

SUPPLYCHAIN

RETAIL TOCONSUMER

HISTORICAL FOCUS80% OF NEW ZEALAND’S R&D EFFORT

VS 20% OF VALUE CHAIN

FUTURE FOCUS80% OF NEW ZEALAND’S ADDED

R&D EFFORT SHOULD FOCUS WHERE 80% OF THE VALUE IS

IMMATURE NETWORKInvesting in

innovation networks, connections and collaborationCONNECTION AND PACE

IMMATURE NETWORK

Investing in innovation networks, connections and collaborationCONNECTION AND PACE

ADVANCED NETWORK

IMMATURE NETWORKIMMATURE NETWORK

Investing in innovation networks, connections and collaborationCONNECTION AND PACE

BUILDING A CITIZEN I.T. ECOSYSTEM FOR PROSPERITY

CONNECTION AND PACE



BRUCE BERNACCHI

INNOVATIONFUNDING

OPPORTUNITIES

Funding Innovation

OTHER7%

GST38%

INCOME TAX55%

TAXSOURCES

SOURCE: OECD

OPPORTUNITIES

Funding Innovation

SOURCE: OECD

TAX / GDP OECD COUNTRIES

31.4%

OPPORTUNITIES

Funding Innovation

Base erosion and profit shifting

INTERNATIONAL HARMONY

FRAGMENTED INTERNATIONAL TAX SYSTEM WITH MORE

CONTROVERSY

OR

CHALLENGES

Funding Innovation

AGEING POPULATION

DIGITAL ECONOMY

INCREASED MOBILITY

INCREASED TAX DISHARMONY

FUTURE PROOFING

Funding Innovation

IMMIGRATION TAX MIX

SUPERANNUATION BUSINESS GROWTH


New Zealand needs:World-leading innovation from Government to deliver outcomes

Networks sponsored by Government to drive the scale and pace of business innovation

Innovative tax policy settings to fund a prosperous future

The role of communitiesKIM JARRETT


REDUCECONNECTION AND PACE

The role of communities


INEQUALITY

COST TO THE INDIVIDUAL

The cost of inequality

SOURCE: STATISTICS NEW ZEALAND

FEMALE

MALE

COST TO THE INDIVIDUAL


SOURCE: STATISTICS NZ

FEMALE

MALE

COST TO BUSINESS


62,000NEW JOBS IN

AUCKLAND BY 2030

COST TO THE COUNTRY


SOURCE: OECD

IMPACT OF INEQUALITY

WITHOUT IMPACT OF INEQUALITY

ACTUAL

COST TO THE COUNTRY


SOURCE: OECD

IMPACT OF INEQUALITY

WITHOUT IMPACT OF INEQUALITY

ACTUAL

CASE STUDY



New Zealand needs:More education innovation

CONNECTION AND PACE More housing innovation

More health innovation

More collaboration

Less inequality

Fast


Documents

Innovating for prosperity - KPMG · Business GODFREY BOYCE Government SOUELLA CUMMING SIMON HUNTER BRUCE BERNACCHI Communities KIM JARRETT. Innovating ... The issue: value chains